As Clamorworld keeps prodding on the various cashless transaction modules available for the average person, it is difficult to not mention about UPI or United Payments Interface. This in simple terms mean a system in the financial world that allows you to transfer money between two parties. A well recognised and standard banking operation it enables users to conduct bank transactions from anywhere in matter of clicks. One major difference between paying through UPI and paying via NEFT/RTGS and other forms of fund transfer is the fact that UPI does not include the hassle of typing card details or net banking password etc. That does not mean it is not safe. While you do not have to type in the OTP or one time password, you need to feed in your MPIN details. Incidentally MPIN is given to a banking customer once they register for Mobile Banking support. The odds are that you already have it but never used it.
Working in tandem with the initiatives by the Government through the National Payments Corporation Of India, many private banks ar ealso in the process of rolling out UPI facilities for their customers and corporates. Some key market players are of the opinion that it can help tackle the challenges of a cash fuelled economy simultaneously with the need t create more avenues of electronic transaction for the cash starved common man. Some leading bankers believe that UPI can even help in cost rationalisation and faster realisation coupled with providing greater convenience to customers. Additionally it is seen as a major step to rein in fraud and pilferage.
For Fintech companies this is being seen as the next major growth platform and even for the ecommerce industry this could be a major catalyst to rev up business going forward. Whether or not majority of Indians will take the cashless path is a fact that only time can tell. Till then let’s look at ways we can encourage and work in sync with the initiatives taken by the Government for a better tomorrow.